SPA Process User’s Guide –
Chapter 1 – Introduction to Capital Assets
Facilities and Other Improvements
Facilities are assets (other than general use buildings) that are built, installed or established to enhance the quality or facilitate the use of land for a particular purpose.
Other Improvements Definition
Other Improvements are enhancements made to a facility or to land.
The straight-line depreciation method (historical cost minus residual value divided by useful life) is used for Facilities and Other Improvements.
The capitalization threshold for facilities and other improvements is $100,000.
Examples of expenditures to capitalize as facilities and other improvements
- Fencing and gates
- Parking lots, driveways or parking barriers
- Outside sprinkler systems
- Recreation areas and athletic fields (including bleachers)
- Golf courses
- Paths and trails
- Septic systems
- Swimming pools, tennis courts or basketball courts
- Plazas and pavilions
- Retaining walls